August 31, 2020 – Fort Worth, Texas.
Istmo Energy signs LOI for the supply of propane and diesel with one of Mexico’s largest importers of fuels.
In an important milestone for the Pecos Crude Processing and Export Terminal, after months of negotiation, Istmo Energy and a large importer of fuels from Mexico have signed a long term commitment for the sale of a significant amount of distillates and propane in Northwest Mexico which secures part of the production that will be available at Istmo’s Pecos Refinery. This agreement reinforces istmo’s commitment to export value from the Delaware Basin to markets in Mexico and the Pacific, and provides a compelling alternative for Mexico’s fuel importers that currently have to transport fuels thousands of miles through land and sea to reach markets that are far from the Gulf Coast where most of Mexico’s fuel imports are sourced.
“With the bulk of fuels imported into Mexico arriving by Sea and trucked to their destination – more than 1,000 miles in the case of NW Mexico and the Pacific, the Pecos Refinery and Export Terminal provides a compelling alternative for importers serving the Northwest Mexico markets. By being connected to the Union Pacific and Ferromex rail network, our facility will have the capability to efficiently serve markets which currently rely on disjointed logistics for their supply of fuels” stated Alex Gutierrez, Principal and Managing Director of Istmo Energy.
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